US FOB Gulf soyabean offers steady on light demand

Export premiums for soyabeans shipped from the US Gulf Coast were unchanged in quiet trading on Friday as markets were closed in China for a national holiday, which kept a lid on fresh purchases by the world’s top importer, traders said. FOB Gulf corn basis offers were also unchanged amid weak demand for US supplies, while wheat basis offers were flat to lower amid ample global supplies of cheaper feed grains. Egypt’s GASC set a tender to buy wheat from global suppliers for shipment November 1-10. Results are expected on Saturday.

In its most recent tender, GASC bought French, Russian and Ukrainian wheat, while no US wheat was offered. Traders said they expect a similar result in GASC’s latest tender. Demand for US corn remained largely concentrated among routine buyers such as Japan, Mexico and Colombia, traders said, with recent inquiries for shipments in December and beyond.

Soyabean demand from China was expected to remain slow through the middle of next week as financial markets there, which provide many traders an opportunity to hedge their import purchases, are closed through Wednesday for a national holiday. Brazil farmer sales of new-crop soyabeans were estimated at 37 percent of production, up from 13 percent last year, grains consultancy AgRural said. The active sales weighed down early 2016 prices, dampening demand prospects for US soyabeans, traders said.

Easing CIF soyabean basis values amid an accelerating harvest and a slowdown in export demand kept a lid on nearby FOB Gulf soyabean basis offers. FOB Gulf soyabean basis offers for last-half October loadings were offered at about 104 cents over November futures, which closed 3 cents higher at $8.74-1/4 a bushel. FOB Gulf corn basis offers for last-half October shipments were flat at 67 cents over December futures, which closed 1/2 cent higher at $3.89-1/4. Soft red winter wheat basis offers for October were unchanged at 75 cents over December futures, which closed 5 cents lower at $5.13-1/4. Hard red winter wheat offers for October fell 5 cents to 105 cents over HRW wheat futures, which closed 7 cents lower at $5.00-1/2.